THE BASIS POINT

TRID Caused Spike in Mortgage Applications

 

MBA Mortgage Applications  (week ended 10/2/2015)

– Purchase Index Week/Week +27.0%. Previous weeks were -6.0%, +9.0%, -4.0%, -1.0%, +4.0%, +2.0%, -1.0%, -4.0%, +3.0%, +0.8%, -0.1%, +1.0%, and -8.0%.

– Refinance Index Week/Week +24.0%. Previous weeks were -8.0%, +18.0%, -9.0%, -10.0%, +17.0%, -1.0%, +7.0%, +3.0%, +6.0%, +2.0%, -1.0%, and +4.0%.

– Composite Index Week/Week +25.5%. Previous weeks were -6.7%, +13.9%, -7.0%, -6.2%, +11.3%, +0.2%, +3.6%, -0.1%, +0.8%, -1.9%, +4.6%, and -4.7%.

This gigantic spike in applications was due to the fact that the new TRID regulations regarding the initial disclosures and the settlement statement went into effect last Saturday. The new regulations create delays in the lending process which will likely translate into higher costs is longer locks become necessary.

 

Consequently, last week’s data and this week’s data (reported next Wednesday) have little value.

 

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